Hyundai Motor Co. Ltd. has appointed investment banks JPMorgan Chase & Co. and Citigroup Inc. to advise on its at least $3-billion initial public offering in India, according to Reuters.
The company plans to file draft IPO papers with Securities and Exchange Board of India by May or June this year, Reuters reported on Friday, citing sources.
A Hyundai India spokesperson declined to comment for this story.
Hyundai Motor India Pvt. Ltd., which entered the subcontinent with its best-selling Santro in 1998, is the second-largest carmaker today with a 15% market share. It's the only foreign player surviving in a hyper-competitive market dominated by Maruti Suzuki India Ltd. American carmakers Ford Motor Co. and General Motors Co. bowed out after years of attempting to carve out a piece of the world's third-largest auto market.
An IPO, if approved, can potentially be the country's largest, eclipsing the Rs 21,000-crore initial share sale by Life Insurance Corporation of India in May 2022. A successful listing will also peg Hyundai India's market cap at half of its parent's $47-billion valuation in Seoul.
“Nothing is confirmed so far,” Hyundai Motor Co. had said in an exchange filing in Seoul on Wednesday, when asked to clarify on reports of an India IPO later this year.
“As a global company, our company includes listing of overseas subsidiaries to increase corporate value. We are constantly reviewing various activities, but nothing is confirmed so far. We will re-announce the above contents once they are confirmed or within one month.”
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